annual fee

Any fee that is charged on an annual (yearly) basis. One of the most common occurrences of an annual fee is the fee that is charged by some credit card companies to their credit card holders, simply for having the credit card. This fee is charged regardless of anything else (the amount or value of purchases with the credit card, for example).

If you don't owe anyone money, you won't have to worry about late fees, interest, annual fees, or over-the-limit fees. The best way to treat yourself to something nice is to save up for it and buy it when you can truly afford it. The peace of mind that will come with not financing your purchase will be like treating yourself twice.